Congress's Phony Insider-Trading Reform

The denizens of Capitol Hill are remarkable investors. A new law meant to curb abuses would only make their shenanigans easier.

By

Jonathan Macey

December 13, 2011

Members of Congress already get better health insurance and retirement benefits than other Americans. They are about to get better insider trading laws as well.

Several academic studies show that the investment portfolios of congressmen and senators consistently outperform stock indices like the Dow and the S&P 500, as well as the portfolios of virtually all professional investors. Congressmen do better to an extent that is statistically significant, according to studies including a 2004 article about "abnormal"...